When resources are NOT allocated efficiently, we have ________________.
A. Answered the basic economic questions
B. A market failure
C. A government failure
D. Market equity
B. A market failure
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The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to:
A) 12.5 B) 10 C) 2.5 D) 7.5
Suppose you purchase a $1,000 bond that bears an interest rate of 10 percent. What will happen if the interest rate goes to 20 percent?
A. The market price of the bond will increase to $2,000. B. The market price of the bond will drop to $500. C. The return on the bond will double. D. The return on the bond will halve.
In which of the following cases would entry and exit cease?
A. P > long-run ATC. B. P < long-run ATC. C. P = long-run ATC. D. P > short-run ATC.
Wet-n-Wild Indoor Water Park offers family fun year-round in the Northstar state to locals and out-of-state visitors. The demand for day passes to the water park for each market segment is independent of the other market segment. The marginal cost of providing service to each visitor is $5 per day. Suppose the daily demand curves for the two market segments are
.(a) If Wet-n-Wild Indoor Water Park charges one price to all visitors, what is the profit maximizing price? How many day passes will be sold per day?(b) If Wet-n-Wild Indoor Water Park charges one price to locals, what is the profit maximizing price for locals? How many day passes will be sold per
day to locals?(c) If Wet-n-Wild Indoor Water Park charges one price to out-of-towners, what is the profit maximizing price for out-of-town guests? How many day passes will be sold per day to out-of-town guests?(d) Compare the prices from uniform pricing to the prices from price discrimination. What will be an ideal response?